yield

Examples of yield in the following topics:

• Characteristics of Bonds

  • The yield is the rate of return received from investing in the bond.
  • It usually refers either to the current yield, or running yield, which is simply the annual interest payment divided by the current market price of the bond.
  • High-yield bonds are bonds that are rated below investment grade by the credit rating agencies.
  • As these bonds are more risky than investment-grade bonds, investors expect to earn a higher yield.
  • This is mainly the case for high-yield bonds.

• Equity Method

  • This is called the Yield Gap or Yield Ratio.
  • It is the ratio of the dividend yield of an equity and that of the long-term bond.

• Defining Current Liabilities

  • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of future economic benefits.
  • A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services, or other transaction yielding an economic benefit, at a specified date, on occurrence of a specified event, or on demand.

• Defining Liabilities

  • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
  • A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services, or other transaction yielding an economic benefit due at a specified or determinable date, on occurrence of a specified event, or on demand.

• Operating Expenses, Non-Operating Expenses, and Net Income

  • Operating expenses and non operating expenses are deducted from revenue to yield net income.

• Introduction to the Income Statement

  • It then calculates operating expenses and, when deducted from the gross profit, yields income from operations.
  • When combined with income from operations, this yields income before taxes.

• Income Statement Analyses

  • Dividend Yield = (Dividends per Share / Market Value of Stock) x 100
  • The dividend yield or the dividend-price ratio of a share is the company's total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share.
  • Dividend yield is used to calculate the earnings on investment (shares) considering only the returns in the form of total dividends declared by the company during the year.

• Redeeming Before Maturity

  • This is mainly the case for high-yield bonds.

• Valuing Zero-Coupon Bonds

  • The discount is a contra-liability linked to the bond payable; this yields a net bond payable of 81,629.79, the bond payable less the discount.
  • The journal entry to recognized the interest expense is: Interest Expense 5,714.09 Discount 5,714.09 The bond discount is reduced by 5,714.09 to 12,656.12, yielding a net bond payable of 87,343.88.

• What Is R&D?

  • Under both models, R&D differs from the vast majority of a company's activities which are intended to yield nearly immediate profits or immediate improvements in operations and involve little uncertainty as to the return on investment (ROI).
  • Gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product.